Carlyle Group Q1 Earnings Call Highlights

Key Points

• Carlyle described a “strong quarter” with $13 billion of inflows, distributable earnings of $327 million ($0.89/sh), fee-related earnings of $300 million at a 47% margin, and more than $12 billion of realizations including record returns to U.S. buyout investors.
• Fundraising was led by Carlyle AlpInvest and global credit — AlpInvest AUM reached $107 billion with about $6.8 billion of inflows while global credit raised $3.9 billion (AUM $209 billion), and the firm finished the quarter with $96 billion of dry powder.
• Management highlighted a $5 billion “first‑of‑its‑kind” anchor commitment for its next U.S. buyout solution, announced two large pending deals (an ~$8 billion BASF coatings carve‑out and a ~$3 billion MAI acquisition), and deployed roughly $10 billion in the quarter, which should support higher transaction fees going forward.

Carlyle Group NASDAQ: CG reported first-quarter 2026 results that management described as a “strong quarter,” highlighting record U.S. buyout realizations, $13 billion of inflows, and fee-related earnings (FRE) of $300 million at a 47% margin.

Quarterly results and key financial metrics

Chief Financial Officer Justin Plouffe said Carlyle generated distributable earnings (DE) of $327 million, or $0.89 per share, in the first quarter. FRE totaled $300 million, up from $290 million in the fourth quarter. Fund management fees were $545 million, up 4% year-over-year, which Plouffe attributed to “continued growth in Carlyle AlpInvest and global credit.”

Fee-related performance revenues were $45 million, which Plouffe said were 15% higher year-over-year, driven by growth in Carlyle’s evergreen wealth strategies. He said evergreen wealth AUM now stands at $19 billion, “4x the level from just three years ago.” Transaction fees were $54 million, and Plouffe said the firm expects them to increase in the second quarter due to several transactions that have signed or closed.

Realizations, deployment, and activity levels

CEO Harvey Schwartz pointed to more than $12 billion of realizations in the quarter, saying Carlyle continues to return capital to investors “at a faster pace than the industry.” Schwartz said the firm returned a record amount of capital to U.S. buyout fund investors, more than 40% higher than the prior record set in 2021.

Plouffe said the firm generated $12 billion of realized proceeds, calling it Carlyle’s “third-best quarter ever.” However, net realized performance revenue (NRPR) was $21 million and lower year-over-year. Plouffe said this was due to the “composition” of exits, noting that many first-quarter exits were in funds not yet realizing carry, “notably CP VII and CP VIII.”

Schwartz said deployment was $10 billion in the quarter. He also cited two large announced transactions expected to close in the coming months: an $8 billion carve-out of the coatings business from BASF and a $3 billion acquisition of MAI Capital Management. Schwartz added that the firm invested $4 billion in private credit and nearly $4 billion across strategies in Carlyle AlpInvest, and said these transactions “should also contribute to a pickup in transaction fee revenue in the coming quarters.”

Fundraising and inflows led by AlpInvest and credit

Carlyle posted $13 billion of inflows in the quarter, which Schwartz called a “great start to the year.” He said Carlyle AlpInvest raised nearly $7 billion, driven by demand for secondaries, co-investment, and portfolio finance strategies, while global credit raised $4 billion.

Plouffe provided additional detail by segment:

• Carlyle AlpInvest: FRE was $68 million. Total AUM reached a record $107 billion, up 20% year-over-year. Record inflows of $6.8 billion were “driven by broad-based institutional and wealth activity.” Net accrued performance revenues were $643 million, up 13% year-over-year.
• Global credit: FRE was $93 million. Management fees of $147 million increased 6%. Total AUM was $209 billion, up 5% from a year ago. Inflows of $3.9 billion included a $1.5 billion first close of a new asset-backed finance fund; Schwartz said the strategy now tops $12 billion, up more than 30% compared to last year.
• Global private equity: FRE was $140 million, in line with the year-ago quarter. Plouffe said fundraising and realizations show “strong momentum,” including record proceeds returned to U.S. buyout investors.

In response to a question about base fee growth and a coming fundraising “super cycle,” Plouffe said base fees were up 4% year-over-year and up 7% on a last-twelve-month (LTM) basis. He said Carlyle expects that growth rate to accelerate as fundraising increases across AlpInvest, private equity, and credit.

$5 billion “first-of-its-kind” U.S. buyout solution

Schwartz said Carlyle closed what he called a “first-of-its-kind investment solution” anchored by a $5 billion commitment for Carlyle’s next vintage U.S. buyout fund. He emphasized that the firm has not launched fundraising for the next U.S. buyout fund yet, which he said will come later in the year.

On the Q&A, Schwartz described the structure as an example of AlpInvest’s expanded capabilities beyond traditional secondaries, including co-investment, primaries, and a “solutions business.” He said the firm designed the structure to meet LP objectives, including portfolio repositioning and liquidity, while also increasing exposure to U.S. buyout.

Schwartz said the arrangement represents “a cornerstone financing of $5+ billion at full fees” and added, “There’s no impact,” when asked about changes to fund economics and fees. He also noted a subordinated equity portion where the firm is aligned with investors, and said interest from other parties increased after the announcement, with “the phone’s been ringing off the hook.”

Credit performance metrics, wealth channel commentary, and capital return

Plouffe said Carlyle’s credit portfolio metrics remain strong. In direct lending, he said the current non-accrual rate is 1%, while the firm’s inception-to-date loss rate over 13 years is eight basis points per annum. In structured credit, he said the default rate is about 50 basis points, “half the industry average.” Plouffe also addressed questions about CLO durability, saying Carlyle feels “great about that business” and pointing to a “well-established investor base.”

On the wealth channel, Schwartz addressed scrutiny around “day one markups” in retail products, saying Carlyle is not changing its practices and that advisor conversations “remain very robust,” citing inflows and strong performance. Separately, asked about elevated redemptions in its diversified credit fund CTAC, Schwartz said CTAC is “quite diversified” with “over 900 names,” is “marked daily,” and that redemptions were not a surprise given industry dynamics. He added that the firm expects the redemption period “may persist for a little while,” while reiterating confidence in the long-term trajectory.

Plouffe also outlined balance sheet and shareholder return items. He said balance sheet assets attributable to Carlyle shareholders totaled approximately $5 billion, or roughly $14 per share. Carlyle declared a quarterly dividend of $0.35 per common share, in line with 2025’s quarterly level. The firm repurchased or withheld 3.8 million shares totaling $205 million during the quarter and has $1.9 billion remaining on its $2 billion repurchase authorization.

Looking ahead, Plouffe said Carlyle enters the second quarter with record dry powder of $96 billion, up 13% year-over-year. He reiterated the firm’s targets discussed at its February shareholder update: a path to $200 billion of inflows, $1.9 billion in FRE, and $6 or more in DE per share by the end of 2028. Schwartz said the firm remains confident it will “reach or exceed” the targets presented in February.

About Carlyle Group NASDAQ: CG

The Carlyle Group NASDAQ: CG is a global alternative asset manager that invests across a range of strategies including private equity, real assets (such as real estate and infrastructure), global credit, and investment solutions. Founded in 1987 and headquartered in Washington, DC, Carlyle raises and manages investment funds that acquire, operate and exit companies and assets on behalf of institutional and private investors. The firm is publicly traded on the Nasdaq exchange and operates as an asset manager and investment advisor rather than as an operating company.

Carlyle's core activities include sourcing and executing private equity buyouts and growth investments, originating and managing credit and financing solutions, and acquiring and operating real asset portfolios.

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